The Chinese commodities trader, which is in the process of transforming into a diversified upstream metals group, is able to raise $500 million after relaunching the deal at a 13.4% discount.

After almost 24 hours in the market, Hong Kong-listed Minmetals Resources yesterday afternoon relaunched its follow-on offering at a significantly smaller size, in a move that sources said reflected a reduction in investor risk appetite.

The same sources said the deal, which had an initial target of $800 million with an upsize option of $200 million, saw good momentum when it first hit the market after the close of Hong Kong trading on Monday, but...